Europe has largely shifted towards a CO2-based vehicle taxation regimen. Next in line to tax what comes out of your car may be, wonders of wonders, China.

“Drivers in China may be taxed on the level of emissions produced from their vehicles in the future,” writes China Daily, citing the comments of an official of the Beijing Development and Reform Commission (BDRC).

“The central government is researching the subject of environmental tax reform of vehicles, including a measure to tax vehicles owners according to vehicle emissions,” said Zhang Yanyou, deputy head of BDRC.

If and when the carbon tax becomes official, people with clean cars will pay less, people with ozone-oinkers will pay through the nose. So far, so good. Would there not be a comment from an “unnamed official” at China’s Ministry of Environmental Protection.

“The more distance your car covers, the more you will pay.”

Uh-oh. Mileage based taxation coming to China? Dutch GPS boxes in every car? Even a simple odometer-reading at the end of the year would overtax the bureaucracy here.

The government is trying to make the cost as high as possible to drive them.

What do you do when you go there? Hang out in KTVs? Did you miss the news that China expanded and extended its Cash for Clunkers program, and is accelerating its hugely successful “cars to the countryside” program? Most of the big car factories are owned by the government. They want to sell more cars, not less.